Nigeria's forex reserves fall 1 pct to $29.5 bln by end-April

 

Nigerian forex reserves fell 1 percent month-on-month to $29.5 billion by April 28, from $29.8 billion a month earlier.

The Central Bank of Nigeria announced this yesterday in Abuja.


The country's external reserves were down 22.6 percent year-on-year when they stood at $38.14 billion.

The CBN has used its forex reserves to support the local currency in the wake of falling global oil prices.

Nigerian interbank rates stable on budget, matured Treasury Bills

 

Nigeria interbank rates held steady at 6 percent on average, unchanged from last week following an increase in cash flow to the banking system from budgetary allocations and retired Treasury bills.


Traders said about 284 billion naira ($1 billion) was injected into the system from budgetary allocations to government agencies, while an additional 227 billion naira was paid out in matured government debt, boosting liquidity and keeping interest rates at a lower level.

 

 

 

 

"The system was very liquid and many banks had sufficient cash to support their transactions this week," one dealer said.

Traders said though the central bank made frantic efforts to mop up excess funds from the interbank market by selling about 828 billion naira worth of Treasury bills, the market remained sufficiently liquid to keep the interbank rate low.

"We expect the system liquidity to open on Monday at around 600 billion naira," another dealer said.
The secured Open Buy Back (OBB) closed at 6 percent, same level last week, same for overnight placement, traders said.

Dealers said rates should remain unchanged next week, unless the central bank takes action by mopping up excess liquidity.

Nigeria awards $3.5bn rail contract

 

A US$3.5bn (£2.31bn) contract has been awarded this week for construction of a 334km railway in Nigeria.

A subsidiary of CRCC China-Africa Construction has entered into a contract with the Ogun State government to build the Nigeria Ogun State Intercity Rail Mass Transit project.

The line has a design speed of 120km/h. The US$3.506bn value was estimated on the basis of conceptual design, while the final price will be determined by negotiations with reference to the construction design.

The formal implementation of the project is subject to the final implementation of the financing.

Marketers collected N500bn oil subsidy in five months – FG

The Federal Government says it had so far paid oil marketers N500bn within the last five months as fuel subsidy.

The Minister of Finance, Dr Ngozi Okonjo-Iweala, said this in a statement by her Special Adviser on Communications, Mr Paul Nwabuikwu.

 

Giving a breakdown of the amount paid so far as fuel subsidy, Okonjo-Iweala said the government had, in December 2014, paid N350bn to oil marketers, noting that additional N31bn in foreign exchange differentials had already been released.

 

It said the Federal Government’s commitment to prioritise payment to marketers in spite of revenue constraints, has now made the ministry to release N156bn to the marketers.

 

The statement read, “In line with the Federal Government’s commitment to prioritise payment to marketers in spite of revenue constraints, the Federal Ministry of Finance has paid the sum of N156bn to oil marketers.

“The payment has two components. The first consists of the cash backing of the N100bn IOU which the marketers were given in March. The second is N56bn in interest payments for the marketers according to the PPPRA template.

“This leaves a balance of N98bn certified by PPPRA as the amount owed the markers.
“The N156bn is the latest in a series of significant payments made to the oil marketers within the last five months.
“These include over N300bn in two installments in December last year and N31bn in interest differentials recently.
“In all, oil marketers have received over N500bn within the past five months.”

FCMB says Q1 pretax profit rises 3.5 pct

Nigeria's First City Monument Bank (FCMB) first quarter pretax profit rose 3.5 percent to 5.76 billion naira ($29 million) from a year ago after it increased interest income, the lender said on Monday.

FCMB said in a statement that gross earnings climbed 16.2 percent during the three-month period to 39.28 billion naira.

Asian demand supports, Nigerian glut gets smaller

Angolan crude differentials drew support from Asian demand, traders said on Monday.

Asian buying tenders have absorbed several cargoes of Nigerian and Angolan crude in the last few days, pushing up differentials for some grades, traders said.

About half of Angola's June cargoes have sold, and traders were reassessing the market after recent deals on Monday, keeping a lid on activity.

There were signs that the large volume of unsold Nigerian crude for May loading is clearing, but at least 20 cargoes are still thought to be available.

NIGERIA

* Qua Iboe was valued at dated Brent plus $1.00, steady to lower than on Friday. Offers were last known to be coming from dated plus $1.50.

* The overhang of Nigerian cargoes in May has come down to 20 full cargoes and 5 partial cargoes, a trader said, from more than 25 as estimated on Friday. This could be reduced further by companies opting to keep cargoes for their own refineries.


ANGOLA

* The June loading programme has expanded to 1.73 million barrels per day from 1.63 million bpd previously.

* All June Cabinda and Saturno cargoes have been sold, a trader said. Cabinda was notionally valued as high as dated Brent minus $1.00, firmer than previous price indications.

* Girassol: Offered at dated plus 50 cents, a trader said, also higher than previous price indications.

TENDERS

* Indian refiner BPCL bought June-loading Nemba and Qua Iboe from Total in its tender last week, as well as an Agbami from Chevron, traders said. Another refiner, IOC, took Nemba and Brass River from Chevron.

* Indonesia's Pertamina is looking to buy July-arrival sweet crude in a tender running this week, and Thailand's PTT also has a buying tender pending.

Petrol Scarcity Looms, as Petroleum Minister debunks fear

The federal government has debunked the claims that petroleum marketers in the country will stop the importation of petroleum products, following the claims that subsidies are yet to be paid.

Speaking with newsmen  in Abuja, the Minister of Petroleum Resources, Mrs Diezani Allison Madueke, while dismissing the threat by markets, assured Nigerians of sufficient availability and supply of petrol across the country.

In the last four weeks, residents of Abuja and environs have been going through tough times in getting the commodity.

The Minister However, called on petroleum marketers to desist from  hoarding the commodities as there is enough stock to sustain the country for a longer period. While apologising to Nigerians for the inconveniences in getting the commodity, the minister promised to deal with marketers found defaulting.

She further cleared the air on rumours that have been making rounds of her seeking asylum, that it's totally untrue.

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